Bryson Sciences is planning to purchase a high-powered microscopy machine for $384,000 and incur an additional $30,800 in installation expenses. It is replacing older microscopy equipment that can be sold for $116,300, resulting in taxes from a gain on the sale of $42,000. Because of this transaction, current assets will increase by $13,000 and current liabilities will increase by $5,200. Calculate the initial investment in the high-powered microscopy machine. The initial investment is $ (Round to the nearest dollar.)

Bryson Sciences is planning to purchase a high-powered microscopy machine for $384,000 and incur an additional $30,800 in installation expenses. It is replacing older microscopy equipment that can be sold for $116,300, resulting in taxes from a gain on the sale of $42,000. Because of this transaction, current assets will increase by $13,000 and current liabilities will increase by $5,200. Calculate the initial investment in the high-powered microscopy machine. The initial investment is $ (Round to the nearest dollar.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 10P

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